Fears over funding for childcare in Lancashire

More than one in 10 nurseries and other early years childcare providers in Lancashire have closed since 2015, according to data published by Ofsted.

The Pre-school Learning Alliance has called for “urgent action” to address a funding crisis it says has left more than 40 per cent of providers in England contemplating closure next year.

Any provider who cares for early years children – from birth up until the August following their fifth birthday – must be registered with Ofsted.

In Lancashire, there were 1,339 such providers on the register at the end of March 2018, 162 fewer than in March 2015.

All three and four-year-olds in England are entitled to 15 hours of free childcare per week during term time.

But since September 2017, parents can claim an additional 15 hours if they earn less than £100,000 a year combined but more than the equivalent of 16 hours at the minimum wage.

The Pre-school Learning Alliance argues that the funding the Government provides for the scheme is not enough to cover costs incurred by providers. Almost three quarters of local authorities in England lost early years providers in the first seven months after the 30 hours scheme was introduced, while 98 per cent have seen a drop since 2015.

In Lancashire, there were 37 fewer providers at the end of March 2018 than there were before the policy changed in September.

Neil Leitch, chief executive of the Pre-School Learning Alliance, said the new scheme had “further exasperated” funding problems already experienced by providers under the 15 hours scheme.

He added: “There has never been any such thing as free childcare. It’s subsidised childcare.

“Early Years funding is frozen until 2020, and while our costs go up, we’re just told to make it work.”

This means providers in poorer areas, where parents are not able to pay more, are struggling the most.

Since 2015, the number of available places in England has not been reducing at the same rate as providers, and in the most recent 12 month period, they increased by 3,800, despite a loss of more than 1,700 providers.